Child Health and Household Resources: Evidence from the South African OldAge Pension Program - PowerPoint PPT Presentation

Loading...

PPT – Child Health and Household Resources: Evidence from the South African OldAge Pension Program PowerPoint presentation | free to view - id: b1266-ZmI1N



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Child Health and Household Resources: Evidence from the South African OldAge Pension Program

Description:

Girls born after Jan 1992 are taller if they live with an eligible woman. Empirics ... at which the diff between the two curves changes. Empirics. Conclusion ' ... – PowerPoint PPT presentation

Number of Views:104
Avg rating:3.0/5.0
Slides: 22
Provided by: itse56
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Child Health and Household Resources: Evidence from the South African OldAge Pension Program


1
Child Health and Household Resources Evidence
from the South African Old-Age Pension Program
  • Duflo, Esther (2000),
  • American Economic Review
  • Papers and Proceedings,
  • 90(2), pp. 393-398

2
Motivation
  • Evidence
  • Childhood nutrition (incl. in utero) affects
    long-term development.
  • In US, monetary transfers to the poor showed to
    have very little impact on child welfare.
  • Argument
  • Parental income and monetary transfers are more
    likely to be of greater magnitude among poor
    households in developing countries.

3
Stylized Facts
  • Pension Expansion
  • Pension introduced for whites in 1920s, during
    apartheid era it was racially discriminatory.
  • Different means test for each race group.
  • Benefits much bigger for whites than for
    Africans.
  • Distribution of whites pensions made through
    post offices, while Africans were distributed
    through mobile pay points that didnt go very far
    into rural areas.
  • At the end of apartheid era, the govt. was
    committed to achieving parity of eligibility
    requirements and benefits between whites and
    Africans.
  • Done so by increasing benefits received by
    Africans.

4
Stylized Facts
  • Rapid increase in coverage and benefits of the
    Old Age Pension program in South Africa in early
    1990s.
  • In 1993, 80 of African women gt60 and 77 of
    African men gt65 received the pension.
  • The max benefit of 370 rands was equal to half of
    the minimum wage.
  • And twice the median income per capita in rural
    areas.
  • Close to 1/3 of African children lt5 live with a
    pension recipient.

5
Stylized Facts
  • Children who live with a pension recipient
  • Tend to come from relatively disadvantaged
    backgrounds.
  • Tend to be smaller than other children their
    age.
  • Height reflects accumulated investments in child
    nutrition.

6
Steckel, Richard H. "Stature and the Standard of
Living." Journal of Economic Literature, 1995,
33(4), pp. 1903-40.
7
Motivation
  • What are we concerned with?
  • Did this increase in household resources,
    improve child health and nutrition?
  • Does Gender of recipient matter?

8
Summary of Paper
  • Presents nonparametric evidence on the effects
    of the expansion of the old age pension program
    in South Africa.
  • Uses age-eligibility instead of pension take-up
    conditional on age-eligibility.
  • Compares the differences in height between
    children in eligible and non-eligible households
    AND between children exposed to the program for a
    fraction of their lives and children exposed all
    of their lives.

9
Related Literature
  • Duflo, Esther. Grandmothers and Granddaughters
    Old-age pensions and Intrahousehold Allocation in
    South Africa. The World Bank Economic Review
    2003 17, 1 ABI/INFORM Global, pg. 1
  • Donato, K. M. Malia, S. Thompson-Colón, T.
    Stainback, M. Counting on Kin Social Networks,
    Social Support, and Child Health Status. Social
    Forces 833, March 2005
  • Shea, John. Does parents money matter? Journal
    of Public Economics 77 (2000) 155184
  • Burgard, Sarah. Does race matter? Childrenss
    height in Brazil and South Africa. Demography,
    Volume 39-4, November 2002
  • Rosenzweig, Mark R. and Wolpin, Kenneth I.
    Heterogeneity, Intrafamily Distribution, and
    Child Health The Journal of Human Resources,
    Vol. 23, No. 4 (Autumn, 1988), pp. 437-461

10
Related Literature
  • Zere, Eyob and McIntyre, Diane Inequities in
    under-five child malnutrition in South Africa
    International Journal for Equity in Health, 2003,
    27
  • Thomas, Duncan. Intra-Household Resource
    Allocation An Inferential Approach The Journal
    of Human Resources, Vol. 25, No. 4 (Autumn,
    1990), pp. 635-664
  • ------------- Like Father, like Son Like
    Mother, like Daughter Parental Resources and
    Child Height The Journal of Human Resources,
    Vol. 29, No. 4, Special Issue The Family and
    Intergenerational Relations (Autumn, 1994), pp.
    950-988
  • Ranchhod, Vimal. The Effect of the South African
    Old Age Pension on Labour Supply of the Elderly
    South African Journal of Economics Vol. 744
    December 2006

11
Theory
  • With the above mentioned assumptions,
  • One expects to find favorable differences between
    children who benefit from the program all of
    their lives and those who benefit for only a
    portion of their lives.
  • Height-for-age still reflects past deprivations
    or illnesses.
  • Results
  • Children born before Jan 1992 smaller in
    households with an eligible member than in other
    households.
  • Girls born after Jan 1992 are taller if they live
    with an eligible woman.

12
Empirics
  • Data from the national survey of South Africa.
  • Carried out jointly by the World Bank and the
    South African Labor and Development Research Unit
    at Uni. of Cape Town.
  • During last 5 mths of 1993, 9000 households (all
    races and areas) interviewed.
  • Measurement (height weight) for all children gt7
    were taken.
  • Sample restricted then to children between 6-60
    months. (following WHO norms)

13
Empirics
  • Height-for-age Z scores constructed.
  • Subtract median among children same age and sex
    in NCHS reference pop.
  • Ref. pop. group of well nourished American
    children.
  • Then divide by the SE in age and sex group in
    ref. pop.
  • While fully controlling for age effects.

14
Empirics
15
Empirics
  • Constructs estimate equations for child-health
    production functions.
  • Where hi is height-for-age of the child and di is
    the date of birth of the child and ei is an error
    term

16
Empirics
17
Empirics
18
Empirics
  • Summarizing these patterns
  • Calculate estimates of the avg. derivative
  • By obtaining estimates for gE(d) and gN(d) by
    running a cubic-spline regression of
    height-for-age on DOB (in mths)
  • Then calculate the analytical expressions for the
    estimated function
  • Then use the analytical expression to obtain
    average derivative over the chosen range.
  • The avg. monthly rate at which the diff between
    the two curves changes

19
Empirics
20
Conclusion
  • Expansion of Pension program has led to an
    improvement in the health and nutrition of
    children.
  • Almost entirely due to pensions received by
    women.
  • So, exogenous increases in income can improve
    child health in developing countries.
  • Dependent on whether if in hands of men or women.
  • Money given to grandparents can reach young
    children.

21
Policy Implications
  • If the program were not naturally biased in
    favor of women, it would not improve child health
    as much
About PowerShow.com